Prime Bank MD resigns over non-reappointment
The bank has decided to move forward afresh with a new talented individual
Rahel Ahmed, managing director (MD) and chief executive officer (CEO) of Prime Bank, has resigned just five days before the end of his term as he has not been reappointed to the same position.
On Tuesday, he sent his resignation letter to the bank's board of directors from home. At present, he is in isolation at home after recovering from Covid-19.
Rahel's term at the bank was scheduled to end on 13 December.
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On 14 December, 2017, he took over as the managing director and CEO of Prime Bank.
When asked about it, Prime Bank Chairman Tanjil Chowdhury told The Business Standard (TBS) that Rahel Ahmed resigned because the board of directors decided not to re-appoint him.
However, Rahel Ahmed said to TBS that, in September, the bank's board of directors re-appointed him for three years.
Noting that this claim is not correct, Tanjil Chowdhury said the board meeting in September talked about the possibility of his re-appointment. But now, the board has decided not to re-appoint him.
According to bank sources, the board of directors of Prime Bank did not agree to re-appoint Rahel Ahmed as he did not meet the targets set for him for the last two years.
Asked why he was not re-appointed, Tanjil Chowdhury said the bank has planned to move forward afresh with a new talented individual.
Rahel Ahmed said he left Prime Bank with the aim of taking on new opportunities and challenges. "I was supposed to resign earlier but it was a bit delayed as I contracted Covid-19."
He said he had worked at the bank for the last six years. As the banking sector has not been in a good state since 2015, Prime Bank has also been affected by it.
He claimed that he had taken the bank to a better position during his tenure, adding that the last year's operating profit was much higher than the previous year's.
Although the amount of the bank's assets, collection of deposits, disbursement of loans, and operating profit increased last year as compared to those in 2018, the net profit after tax deduction dropped.
In 2019, Prime Bank's net profit was Tk200 crore. It was Tk218 crore in 2018.
The bank's net profit fell sharply in January-September this year. Compared to the same period last year, the net profit has decreased by more than 30% to Tk105.54 crore.
Prior to assuming the post of managing director, Rahel Ahmed had been a deputy managing director and chief business officer of Prime Bank since 2015.
He has played the key role over the last three years in leading the "Business Model Restructuring and Centralisation" for Prime Bank.
Rahel Ahmed has experience of working in multinational banks at the international level. He has worked for ANZ Grindlays Bank and Standard Chartered Bank for over a decade.
He subsequently resided and worked in Dubai, UAE for around seven years to work for two of the largest regional banks – Emirates NBD Banking Group and First Gulf Bank – in different senior roles, including a specialisation in Islamic banking.
